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Funding Cut For Mortgage Rescue !

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Mods delete if this is a repost, apologies

http://www.bbc.co.uk/news/business-10686369

Government funding for a scheme aimed at helping those facing home repossessions in England is to be cut, the housing minister has announced.

Grant Shapps said that the government grant for the Mortgage Rescue Scheme would be reduced.

The scheme allows people to sell their property to a local authority or housing association and remain in it as a tenant.

He said reducing the deficit to keep interest rates low was more effective.

Housing is a devolved power, and separate schemes are in operation in Scotland and Wales.

Take-up

The Mortgage Rescue Scheme in England, which also allows people to sell part of the home in a shared equity deal to reduce mortgage payments, has helped 629 households since it was set up in early 2009.

Another 1,849 applications were ongoing by the end of March, the latest figures show. In these cases, lenders would hold off any repossession action.

When it was launched under the previous Labour government in January 2009, ministers said that up to 6,000 households could be helped by the scheme.

Housing groups said government support for homeowners had helped keep a lid on repossessions, which are much lower than during the housing slump of the early 1990s.

This prompted the Council of Mortgage Lenders (CML), charity Shelter and Citizens Advice to write to Chancellor George Osborne to urge him to keep support schemes going.

Mr Shapps said that the Mortgage Rescue Scheme needed to be "refocused" to offer better value for money, claiming that the funding was about to run out. It will be looked at again in the overall spending review.

Another scheme to help those struggling with mortgage arrears would be retained as a backstop if interest rates rose, he added.

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Might be a false economy.

Seemed like a good idea to me.

I dunno, expecting the government to shell out hundreds of thousands to buy houses from people, then charging them pennies to rent it back doesn't seem so clever, particularly when they can't even afford the pennies in rent.

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Isn't this the scheme that only 600 odd people were actually benefiting from?

The repossessions 'safety net' scheme is to be retained, though - although this surely will only defer the pain for those folks who are simply way too deep in debt.

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  • 141 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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